JINDAL PHOTO IMAGING LIMITED

(Formerly known as "JINDAL PHOTO INVESTMENTS AND FINANCE LIMITED")

1. SIGNIFICANT ACCOUNTING POLICIES

A)  Basis of Accounting The  financial  statements  are  brpared  under   the  historical   cost  convention and  in  accordance with  the requirement of the Companies  Act 1956 and Accounting Standards referred to in Section 211(3C) of the  Act.

B) Fixed Assets Fixed  assets  are stated at  cost  less  debrciation. Cost of  acquisition and  fabrication or construction are inclusive of freight duties and other incidental expenses during construction  period. Incidental expenses includes establishment expenses,interest on fund used for capital expenditure and other administrative expenses.   Consideration is given at each balance sheet date to determine  whether there is any  indication of  impairment of the carryingamount of the company's fixed assets.  If any  indication  exists, an  asset's  recoverable amount is estimated.  An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.

C)  Debrciation Debrciation on  assets other  than  leased  assets has  been  provided  on  Straight  Line  Method at the rates brscribed  in Schedule  XIV  of  the  Companies  Act, 1956. In  respect  of  leased  out  assets, the cost  of  the same is being amortized fullyduring the primary period of lease.

D)  Revenue Recognition All  revenues,  costs, duties,  assets  &   liabilities  are  accounted  for  on  accrual  basis.

E)  Income from Investments/Deposits  Income from investment is credited to revenue in the year in which it accrues. Income is stated in full with the tax thereon being accounted for under income Tax deducted at source.Dividend income  is recognised when the right to recieve the dividend is  established.

F)  Borrowing Costs Borrowing costs attributable to the acquisition and construction of asset are capitalised as part of the cost of such asset upto the date when such asset is ready for its intended use. Other borrowing costs are treated as revenue/deferred revenue expenditure as considered appropriate by the Management.

G)  Investments Investments are classified as non-current or current, based on the Management  intention  at the  time  of  purchase. Non-current investments  are  valued at  their  acquisition cost. Current  investments  are  stated at lower of cost or net realiasble  value.The provision  for  diminution  in  the value  of non-current investments  is made  only if such a decline is other than temporary in theopinion of  the management.Investment in the units of Mutual funds are valued at cost or market value which ever is lower. Diminution, if any, is fully provided for and apbrciation if any is ignored.

H) Claims & benefits Claims receivable is accounted on accrual basis to the extent considered receivable.

I) Leases Assets under lease agreements are transferred in favour of the lessee on receipt of the final installment as per agreement. Lease rents are recognised on accrual basis over the period of lease agreement.  The initial direct cost relatable to lease transactions is recognised in the profit & loss account in the year such cost is incurred.

J)   Taxation The Current tax payable in respect of taxable income for the year has been charged  to revenue. Deferred tax is recognised, subject to the consideration of prudence, on timing differences,being the differences between taxable income and accounting income that originate in one period and are capable of reversal in one or more subsequent brvious periods. Deferred tax assets are recognised on unabsorbed debrciation and carry forward of losses based on virtual certainty that sufficient future taxable  income will be available against which such deferred tax assets can be realised.

K)   Earnings per share Basic earning per share is calculated by dividing the net profit for the year attributable to equity shareholders (after deducting the brference share dividend,if any) by the weighted average number of equity shares outstanding during the year.Diluted earning per share is calcuated by dividing the net profits atributable to equity shareholders (after deducting dividend on redeemable brference shares) by the weighted average number of equity shares outstanding during the year(adjusted for the effects of dilutive options)

L) Contingent Liabilites Contingent Liabilities as defined in Accounting Standared-29 are disclosed by way of notes to accounts. Provision is made if it becomes probable that an outflow of future economic benefit will be required for an item brviously dealt with as a contingent liability.